Buying and selling over the Internet E-COMMERCE Buying and selling over the Internet
ON-LINE SHOPPING Advantages – consumer Advantages – retailer Can shop the world over Do not have to leave home Cost savings in travel Can shop anytime Advantages – retailer Less sales people Less investment in physical sites Wider customer base
ON-LINE SHOPPING Disadvantages – consumer Disadvantages – retailer Security for paying Legitimacy of sites Unsolicited online advertising Disadvantages – retailer Wholesalers might sell on their own Unemployment Loss of personal touch
So how do Web sites make MONEY
Advertising
IDEA – charge by the number of visitors to the site PORTAL The site you use as your guide to the rest of the Internet.
They pay a % of the sales made through the site. AFFILIATES Another idea!! Get companies to become They pay a % of the sales made through the site. AFFILIATES
Did you know YAHOO has become a PORTAL?
And so is MSN SNAP EXCITE Netscape AOL Go Network
How to make Web advertising EFFECTIVE Use a banner ads Remember applets? Use a live banner ad – allows you to get more information about the product without going to the site Use context-sensitive advertising – ad is related to the subject matter on the screen
Disadvantages to users: Takes time to load the graphics Ads load first
A little aside: Do you know what Web analysis software is? This software runs in the background of a site. It makes note of everything it – what site you came from _ what time of day you visited _ how long you stayed _ what files you downloaded
Is it invading your privacy? It is used by businesses to analyze the effectiveness of its advertising. Is it invading your privacy?
Call accountant about Taxes JK c
INTERNET TAX FREEDOM ACT No taxes on Internet access charges No taxes on out-of-state businesses Summary – Internet should be free of new taxes for 3 years.
Sales taxes may only have to be added to purchases if company has a physical presence in your state.
SECURE SOCKETS LAYER (SSL) Standard for encrypting online transaction payments
Two types of E-COMMERCE B2C – business to customer B2B – business to business
TRAFFIC JAMS
FACTS BANDWIDTH – measure of the data transferred BACKBONE – major links Digital/analogue transmission ISDN/DSL – do digital transmission ISP – does analogue transmission
Downloading active audio, video, and animation content. STREAMING Downloading active audio, video, and animation content.
REALPLAYER a plug-in which allows streaming YAHOO REALPLAYER a plug-in which allows streaming YAHOO!Events presents live radio and television shows
Ways to send information Unicasting – sends to each recipient Broadcast mode – sends to all Multicasting – sends to selected individuals Push technology/webcasting – information that is sent to you automatically – with your consent
Intranet – private Internet-like network Intranet/Extranet Intranet – private Internet-like network Extranet – An intranet with extra connections (a company and some selected customers
VPN – virtual private network Carves out a private passageway through the Internet PPTP Point to Point Tunneling Protocol Allows use of the Internet to transmit data privately